Midday in the Markets


Highlights

  • The US Dollar is down $0.54 at 100.55, as political uncertainty has traders worried.
  • Crude is down $0.18 at $52.93 per barrel.
  • The DJIA is down 21 points at 20,591.
  • In the 6-10 day forecast, temperatures remain unchanged with the PNW remaining below average and states east of the Rockies being above average.  Precipitation is likely to be above average for the entire country.
  • CHS Hedging will be holding Energy Hedging classes on Thursday, March 16 in Colby, KS at the City Limits Convention Center and Wednesday, March 22 in Champaign, IL.  Sign-up information will be available later this week on www.chshedging.com.
  • Grain markets will be closed on Monday, February 20 for President’s Day and reopen Monday evening at 7:00 pm CT.
  • CHS Hedging will be open 8:00-Noon CT on Monday to take energy orders and will reopen Tuesday for normal business hours.

Grains and Oilseeds

Corn            

  • Corn is a penny lower after yesterday’s rally.
  • Kenya will import 450 tmt of yellow corn for animal feed millers from Ukraine.  This is the first time Kenya has had to import corn since 2011.
  • The 6-10 day forecast looks wetter for Brazil.
  • Export sales for corn came in at 0.783 mmt, slightly below the estimated range of 0.900-1.100 mmt.
  • Corn is slightly lower today as the soybean market is pressuring it lower.
  • Spreads: H/K 7 ½ cent carry, H/N 14 ¼ cent carry, H/U 19 ½ cent carry.

Beans

  • Soybeans are 5-9 cents lower.
  • 1-5 day forecast looks wetter for Argentina.
  • Export sales for the soy complex are as follows: soybeans were 0.890 mmt, soymeal 0.121 mmt, and soyoil 9.900 tmt.
  • Soybeans are moving lower this morning after yesterday’s double-digit rally.
  • Spreads: H/K 11 cent carry, H/N 19 ¼ cent carry, H/Q 17 ¼ cent carry.

Wheat

  • Wheat futures are mixed this morning. Chicago is up 5-6 cents, Minneapolis is down 4-7 cents, and KC is 2 cents higher.
  • Export sales came in at 0.569 mmt, slightly ahead of the estimated range of 0.300-0.500 mmt.
  • EU soft wheat exports have fallen 7.7% from a year prior.
  • Chicago wheat is leading the wheat complex higher today on technical buying.
  • Spreads: H/K Chicago 13 ½ cent carry, H/K Mpls 5 cent carry, H/K KC 12 ¾ cent carry.

Livestock

Cattle

  • Cattle are lower this morning.  Live cattle are down $0.10-$0.25 and feeder cattle are $0.15-$0.52 lower.
  • Packer margins remain weak at -$79.00 per head in the red.
  • Boxes are higher this morning. Choice is up $0.93 at $189.27 and selects are up $0.75 at $187.90.

Hogs

  • Lean hogs are $0.05-$0.50 lower this morning.
  • Packer margins have moved lower again, remaining in the black at $18.36 per head.
  • Carcass values are down $0.88 at $84.60.
  • Pork bellies are down $3.75 at $180.47.